U.S. Texas Company Maintenance Guideline
After successfully registered in Texas, the Corporation or LLC are required to operate in compliance with the Business Corporation Law/Limited Liability Company Law of the State of Texas. The following describes the Texas company’s basic maintenance requirements.
Texas law requires that every business entity must have and maintain a Registered Agent in the State of Texas who may be either an individual resident or business entity that is authorized to do business in the State of Texas. The registered agent must have a physical street address in Texas.
All Corporation and LLCs registered at Texas are required to file Annual Reports, including the Public Information Report and Franchise Tax Report. The annual reports are due May 15. If May 15 falls on a weekend or holiday, the due date will be the next business day. The Public Information Report includes the most current names and addresses information of all the board directors. The Franchise Tax Report must be filed with Comptroller of Public Accounts, even without any tax due. Franchise tax rates, thresholds and deduction limits vary by report year. Please refer to the following table for year 2020 and 2021.
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Year 2020 and 2021
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Item
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Amount
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No Tax Due Threshold
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$1,180,000
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Tax Rate (retail or wholesale)
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0.375%
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Tax Rate (other than retail or wholesale)
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0.75%
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Compensation Deduction Limit
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$390,000
| In addition to Franchise Tax, according to Federal and State tax rules, all active business registered in Texas must file tax returns on time, including business income tax, sales tax, payroll tax and other relevant taxes returns. Please note, Texas state does not impose income taxes on business entities.
According to Internal Revenue Code, the payments that certain foreign persons receive from U.S. sources, are subject to tax withholding. And they must report the amount withheld to IRS, if any. If a business entity in US held bank or financial account out of US, the entity maybe required to file FBAR with Department of Treasury, or FATCA related forms with IRS.
As discussed above, all active Texas Corporations and LLCs are required to operate in compliance with the Texas business laws. You are also required to maintain and update the accounting books in accordance with the tax and business law. The business entities may also need to apply for the license and permits with state according to different industries. Kaizen U.S. office is a professional CPA firm, offers complete compliance services and business support, such as bookkeeping, filing tax return, making payroll, etc.
See also:
Texas Corporation Registration
Texas Corporation Dissolution
Texas Limited Liability Company Registration
Texas Limited Liability Company Dissolution
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